Discounted Cash Flow (DCF) Analysis Levered

Northern Trust Corporation (NTRS)

$97.49

-0.68 (-0.69%)
All numbers are in Millions, Currency in USD
Stock DCF: 540.41 | 97.49 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,706.905,220.805,298.605,337.706,464.507,018.137,619.168,271.688,980.079,749.13
Revenue (%)
Operating Cash Flow 1,720.401,767.502,5921,896.801,3562,468.082,679.452,908.923,158.043,428.50
Operating Cash Flow (%)
Capital Expenditure -472.80-506-599.80-560.40-515.10-695.13-754.66-819.29-889.46-965.63
Capital Expenditure (%)
Free Cash Flow 1,247.601,261.501,992.201,336.40840.901,772.951,924.792,089.632,268.592,462.87

Weighted Average Cost Of Capital

Share price $ 97.49
Beta 1.077
Diluted Shares Outstanding 209.01
Cost of Debt
Tax Rate 23.12
After-tax Cost of Debt 0.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.704
Total Debt 7,898.10
Total Equity 20,376.19
Total Capital 28,274.29
Debt Weighting 27.93
Equity Weighting 72.07
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,706.905,220.805,298.605,337.706,464.507,018.137,619.168,271.688,980.079,749.13
Operating Cash Flow 1,720.401,767.502,5921,896.801,3562,468.082,679.452,908.923,158.043,428.50
Capital Expenditure -472.80-506-599.80-560.40-515.10-695.13-754.66-819.29-889.46-965.63
Free Cash Flow 1,247.601,261.501,992.201,336.40840.901,772.951,924.792,089.632,268.592,462.87
WACC
PV LFCF 1,226.071,251.721,277.901,304.621,331.91
SUM PV LFCF 8,692.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.34
Free cash flow (t + 1) 2,512.13
Terminal Value 57,883.13
Present Value of Terminal Value 42,566.58

Intrinsic Value

Enterprise Value 51,258.89
Net Debt -61,690.30
Equity Value 112,949.19
Shares Outstanding 209.01
Equity Value Per Share 540.41